GBP/JPY is under pressure now. The pair has been capped by its descending 20-period moving average and remains under pressure. Meanwhile, the declining 50-period moving average also maintains a bearish bias. The first target to the downside is set at the horizontal support and overlap at 159.80. A breakout below this level would open the way to further weakness toward 159.30.
Trading Recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 159.80. A break of this target will move the pair further downwards to 159.30. The pivot point stands at 162.50. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 163.15 and the second target at 163.85.
Resistance levels: 163.15, 163.85, 164.35
Support levels: 159.80, 159.30, 158.65
